News Report — Latest data from the General Administration of Customs shows that China's transformer exports continued their strong growth momentum in the first half of 2026. The export value reached RMB 39.79 billion, a year-on-year increase of 26.78%, following a record full-year export value of RMB 64.6 billion in 2025, up nearly 36% from the previous year. The global dry-type transformer market exceeded US$ 16.82 billion in 2025, with a year-on-year growth of 9.1%, and is projected to reach US$ 18.35 billion in 2026, with the Asia-Pacific region accounting for 47.3% of the global market share.

From the perspective of market structure, Southeast Asia remains the fastest-growing export destination for Chinese transformers. Vietnam and Indonesia recorded annual growth rates of 23.5% and 19.8% respectively, driven by accelerated power grid upgrades and new energy infrastructure construction. The ASEAN transformer market is projected to maintain robust expansion through 2030, with the broader Southeast Asia power transmission and distribution market expected to grow from US$ 57.39 billion in 2025 to US$ 95.75 billion by 2031. The Middle East and Africa region has also emerged as a high-value market, with the transformer market valued at US$ 5.37 billion in 2025 and estimated to reach US$ 6.32 billion by 2031, as countries such as Saudi Arabia and the UAE accelerate renewable energy integration and grid modernization under mega-projects like NEOM.

A significant new growth driver in 2026 is the explosive demand from AI data centers. The global market for transformers used in data centers was valued at approximately US$ 1.45 billion in 2025 and is forecast to reach US$ 3.40 billion by 2032, with a CAGR of 13.1%. The AI data center dry-type transformer segment alone is growing at a CAGR of 7.3%, as hyperscale computing facilities require high-reliability, low-loss power distribution solutions. In China, domestic transformer market size grew by over 20% year-on-year in 2025, with AI computing power and ultra-high-voltage related high-end product orders accounting for more than 35% of total orders.

On the technology front, Chinese manufacturers are making notable breakthroughs in energy-efficient solutions. Amorphous alloy dry-type transformers have emerged as a key innovation, reducing no-load losses by 60%–80% compared with conventional silicon-steel transformers. These transformers are now widely deployed in data applications, leveraging their fire-resistant, explosion-proof, and low-loss characteristics. Meanwhile, IoT-enabled condition monitoring systems are transforming transformer maintenance paradigms, with real-time fault detection platforms achieving approximately 38% reduction in power consumption. China now accounts for over 60% of global transformer production capacity, supported by a fully integrated supply chain and a lead time advantage of approximately 22 days compared with international peers.

With the continuous implementation of the RCEP framework, tariff reductions have further boosted China's competitiveness in ASEAN markets. More than 90% of electrical and mechanical products under RCEP have achieved zero tariffs, significantly enhancing the cost advantage of Chinese transformer exports. Looking ahead, industry analysts expect China's transformer export value to maintain double-digit growth through 2027, as global power grid investment continues to rise and the energy transition accelerates worldwide.

About the Manufacturer

Jiangsu Hualai Electric Technology Co., Ltd. is a source factory specializing in the research, development, and production of dry-type transformers, oil-immersed transformers, and related power distribution equipment. With advanced automated production lines and a comprehensive quality management system, the company serves customers across Southeast Asia, the Middle East, Africa, and Europe.

- Website: https://www.hualaipower.com/

- Email: hualaipower@gmail.com

- WhatsApp: +86 18852130008 / +86 18914882008

For inquiries on customized transformer solutions, OEM/ODM cooperation, or bulk orders, please contact us directly.